HMM approves selling car-carrier division in shareholders meeting

Hyundai Merchant Marine held a shareholders meeting September 24 to approve selling off its car?carrier division for 1.5 billion dollars (about 1.8 trillion won) to 4 companies including European Wallenius Lines. Also during the meeting, Mr. Noh was appointed as registered director to oversee the sell-off.
HMM made over car-carrier department of 72 car carriers (including charters), sales parts, and sales rights to RoRo Korea Inc., composed of Wallenius Lines, Wihellumsen Lines, Hyundai Motors and Kia Motors until 15 October.
The sale is likely to be completed by the end of October as the Korea Industrial Bank, Citi Bank, and the Korea Exchange Bank have decided to assist a joint-venture of four companies with 900 million dollars to finance the deal. This new joint?venture will have the exclusive rights to transport all export goods from Hyundai Motor and Kia Motor for the next five years and to carry 80% of the total for two years after that.
Revenue from the deal will be used by HMM to bring down its debt ratio to 300%. It expects to consolidate for sales activities by solving liquidity problems and improving its financial structure.